By Liza Lin and Sara Germano 

SHANGHAI -- Nike Inc. admitted that some of its sneakers sold in China were inaccurately marketed, after state television accused the company of making false claims in a high-profile broadcast.

The claims were leveled during CCTV's annual March 15 or "315" broadcast, which coincides with World Consumer Rights Day and often targets multinational companies. The broadcaster said that a model of Nike's Kobe basketball shoes was advertised as containing its signature "zoom air" cushion.

In a statement, Nike said 300 pairs of its Nike Hyperdunk 2008 FTB basketball shoe were sold in China last April "with an inaccurate product description stating that the shoe contained air bags." The company said it apologized to affected consumers and offered refunds.

Nike said Wednesday it "will fully cooperate with the government regulators regarding their inquiries."

In social-media forums, Chinese consumers have complained about the discomfort of the shoes. One buyer approached Nike and was told the shoes didn't contain an air cushion and was offered a refund, CCTV reported.

Nike faced similar accusations in 2012, when state media said the sportswear brand was fined 4.87 million yuan ($704,000) based on claims that it was overcharging consumers and advertising its high-end basketball shoes as having a double air-cushion, when the shoes were found to only have one. Nike China apologized and offered refunds for the consumers who bought the affected shoes, according to the state-run Xinhua News Agency.

Although scarcely noticed in the U.S., March 15 has become something of an unofficial holiday in China, thanks to the annual two-hour broadcast by China Central Television spotlighting corporate misdeeds. The show has hit a chord in a country where consumers have few avenues for redress when it comes to dealing with fake and faulty products, or poor customer service.

In the past, CCTV has issued accusations against foreign businesses including Volkswagen AG, Apple Inc., McDonald's Corp. and retailer Carrefour SA on issues ranging from food safety to quality defects and subpar customer service. In 2013, the broadcaster accused VW of selling cars in China with substandard direct-shift gearbox systems that caused acceleration problems and car accidents for an unspecified number of consumers. Volkswagen said then that it planned to fix gears with problems for customers in China.

China has been one of Nike's fastest-growing regional segments in recent years, and a priority as the Beaverton, Ore.-based company faces stiffer sales competition there from chief rival Adidas AG. Nike reported sales in Greater China of $1 billion for its most recent quarter, up 13% from the previous year.

--Wayne Ma in Beijing contributed to this article.

Write to Liza Lin at Liza.Lin@wsj.com and Sara Germano at sara.germano@wsj.com

 

(END) Dow Jones Newswires

March 15, 2017 19:02 ET (23:02 GMT)

Copyright (c) 2017 Dow Jones & Company, Inc.
Nike (NYSE:NKE)
Historical Stock Chart
From Feb 2024 to Mar 2024 Click Here for more Nike Charts.
Nike (NYSE:NKE)
Historical Stock Chart
From Mar 2023 to Mar 2024 Click Here for more Nike Charts.